Army Corps of Engineers NSA Data Center

DEPARTMENT OF THE ARMY

Sacramento District, CORPS OF ENGINEERS
Williams Resident Office
17800 S. Camp Williams
Riverton, UT 84065

October 12, 2012 C-0512

Subject: Contract No. W912DR-10-C-0094; Utah Data Center, Camp Williams, Utah
01 - Pay Request No. 49

Balfour Beatty/DPR/Big-D

404 West 400 South

Salt Lake City, Utah 84101-1108

Gentlemen,

The Government has received and reviewed Pay Request No. 49. The Contractor
requested $15,897,313.69; however the Government is paying the Contractor
$13,893,792.92, due to various reasons, as stated in this letter.

The Government is reducing the percentages on the following activities due to
various issues, in the total amount of $176, 1 86.50:

1 . The Government pays up to 50% of the activity value when no Initial Inspection
has been held:

33C3592 RAF Pedestal L/O @ Elec/Mech Gallery LI SE Quad DCM3, 50%
($1,188.50)

2. Preparatory Meeting has not been held:

32C610736 Instl Lighting Inverter ME05 LI NE DCM2, 0% ($138,092.00)

3. Wall 2 Wall (Town & Country Flooring) has not submitted the last 19 weeks o
Certified payroll to the Government (06/09/2012, 06/16/2012, 06/23/2012,
06/30/2012, 07/07/2012, 07/14/2012, 07/21/2012, 07/28/2012, 08/04/2012,
08/11/2012, 08/18/2012, 08/25/2012, 09/01/2012, 09/08/2012, 09/15/2012,
09/22/2012, 09/29/2012, 10/06/2012, 10/13/2012):

23CO-0990 Install VCT/Carpet Flooring - VCC, 0% ($10,099.00)

23CO-0993 Install Rubber Flooring - VCC, 0% ($7,800.00)

26CO-0990A Install VCT Flooring in Offices (Grid 5 to 7) - PWH -LV0-ARA, 0%
($4,105.00)

26CO-0990B Install Rubber Base (Grid 5 to 8) - PWH - LV0-ARB, 0%
($4,106.00)

41CD3122 Rubber Floor Base All Areas CPI , 0% ($4,317.00)

45CA1576 Rubber Floor Base All Areas GP1, 0% ($6,479.00)

W91 2DR-1 0-C-0094

C-0512

The Government will also hold $1 ,096,082.00 for subcontractor earnings at the
request of BDB (see attached letters from BDB to applicable subcontractors).

As a result of BDB's imposed subcontractor deductions, please reference and adhere
to FAR Clause 52.232-27 Prompt Payment for Construction Contracts, paragraph (e)
Subcontractor Withholding Procedures.

The activity percentage reductions ($176,186.50), along with BDB’s requested
subcontractor deductions ($1 ,096,082.00), make the new total requested amount for Pay
Request No. 49 $14,625,045.19.

As a result of the project being behind schedule on Deliverables IB and 2, based on
the schedule submitted with Pay Request No. 48 and the subsequent progress, a
retainage of 5% has been made from your total requested amount. The Government is
retaining 5% of the total requested amount as this equates to 10% of the requested
earnings for Deliverables IB and 2.

The Government will be retaining 5% from the total requested amount
($14,625,045.19) of Pay Request No. 49, in the amount of $731,252.27, which will be
released at a later date. Therefore, the Government will pay the Contractor
$13,893,792.92, for Pay Request No. 49. Similar retainage can be expected on future
payment requests until the project is back on schedule or completed. As stated above in
FAR Clause 52.232-5, “the Contracting Officer may retain a maximum of 10 percent of
the amount of the payment until satisfactory progress is achieved.” This is at the
discretion of the Government to protect its interests and ensure satisfactory progress.

The above mentioned retainage is in accordance with FAR Clause 52.232-5
Payments Under Fixed-Priced Construction Contracts, paragraph (e) Retainage, which
reads as follows:

(e) Retainage. If the Contracting Officer finds that satisfactory progress was
achieved during any period for which a progress payment is to be made, the
Contracting Officer shall authorize payment to be made in full. However, if
satisfactory progress has not been made, the Contracting Officer may retain a
maximum of 10 percent of the amount of the payment until satisfactory progress
is achieved. When the work is substantially complete, the Contracting Officer
may retain from previously withheld funds and future progress payments that
amount the Contracting Officer considers adequate for protection of the
Government and shall release to the Contractor all the remaining withheld
funds. Also, on completion and acceptance of each separate building, public
work, or other division of the contract, for which the price is stated separately in
the contract payment shall be made for the completed work without retention of
a percentage.

Analysis of your current progress schedule, submitted with Pay Request #48,
indicates a disparity with what is being reported in the various UDC Project meetings
(PDTs, PLT, ELT, etc.). The current progress schedule indicates that Deliverables IB,

2, and 3 are scheduled to finish on October 15, 2012, December 24, 2012, and August
8, 2013, respectively. Please incorporate accurate logic and activity durations, for each
Deliverable, into the schedule and submit to the Government with the next pay request
(Pay Request #50). This is in accordance with the agreement made by Government and

W91 2DR-1 0-C-0094

C-0512

BDB representatives in the September ELT Meeting, held September 5, 2012. This
revised schedule will be used as the final baseline schedule for the remainder of the
project. All changes to the schedule (logic, durations, etc.) will require prior approval
from the Government. If an acceptable schedule is not submitted, the Government
reserves all its rights under the contract, including potential denial of payment, until the
project schedule accurately reflects each Deliverable’s completion date.

If progress is not complete in accordance with the requirements of Deliverable IB,
the government is authorized to asses liquidated damages in accordance with contract
clause 52.21 1-12 in the amount of $53,585 for each calendar day of delay.

If you have any further questions
(801) 302-5022.

or concerns, please contact

Administrative Contracting Officer
Williams Resident Office

Attachment 1 - Consolidated Paving & Concrete, Inc.
Attachment 2 - Green Construction Inc.

Attachment 3 - Jacobson Excavation, LLC

SAiiaCV* P8AT7V » OWt* «0*1>

Balfour Beatty/DPR/Bfg-D, a Joint Venture
P.O. Box 1607
Riverton, UT 84065
Phone: 801-253-5500
Fax: 801-253-7210

October 10, 2012

Mr. Jeremiah Falslev
Consolidated Paving & Concrete, Inc.
1705 W. 2450 South
Ogden, UT 84401

Project

Contract

Classification

Subject

[11095] Utah Data Center

W912DR-10-C-0094

Unclassified/For Government Use Only

Progress Payments Overstated in Owner Pay Application #48

Dear Mr. Falslev:

Under FAR 52.232-27 Prompt Payment for Construction Contracts referenced in Attachment 5.5 of
your contract, BDB is required to make progress payments to subcontractors within 7 days of
receipt of owner funds. BDB expects funding from USACE on October 10, 2012 for BDB Pay
Application #48 representing earnings through September 17, 2012.

During preparation of Pay Application #49, BDB reviewed the "in place progress" of your activities
and realized that progress reflected in Pay Application #48 was overstated in terms of cost %
complete" for Consolidated Paving. Reference Subcontractor Earnings Report (SER) #48
enclosed and posted to your Constructware folder. Since BDB may not hold earned monies
unpaid to Subcontractors, the funds earned on behalf of Consolidated for Pay App #48 have been
returned to USACE on Pay App #49. Monies associated with the progress variance will be paid to
Consolidated once activity progress is validated with BDB's Superintendents and the "cost %
complete" advanced accordingly.

Specifically, the accounting is as follows:

• Total Completed and Stored as shown in Pay App #48 $11,037,460

• Total Paid as of October 9, 2012 $10,436,769

e Funds returned to USACE in Pay Application #49 $ 600,691

No action is required on your part relative to invoicing. Please validate actual progress with BDB's
Superintendent. You are welcome to email me at bhendrickson@bdbiv.com or call me at
801.381.6634 if you have any concerns with our assessment.

Sincerely,

BALFOUR BE ATTY/ DPR/ BIG-D, A JOINT VENTURE

/

Bill Hendrickson
Project Controls Manager

Joan Williford (Balfour Beatty/DPR/Big-D, a Joint Venture)
Cyndee Hadley (Balfour Beatty/DPR/Big-D, a Joint Venture)

Page 1 of 2

TrrTT

"i

^^oj^elsorWBalfour Beatty/DPR/Big-D, a Joint Venture)
|^^HHHH^H[United States Army Corps of Engineers)

Correspondence No. 02451

Enclosures Pay App #48 Consolidated SER

Supporting Documents

Document

Type

Document

Open

Description

Date

Size

(KB)

Doc

11095-30685

Pay App 48 Consolidated Paving Inc
SER

10/10/2012

141

Page 2 of 2

i

sj • nn uh i « vtn i ut\

09 17 12 • 5ER - CONSOLIDATED PAVING, INC revl.xlsx

UTAH DA TACENTEk PROJECT. CAMP m~U/

IAPPUCATION AMD CERTIFICATE FOR PAYMENT

[TO Balfour Beatty | DPR | Blg-D

10427 North 1 1 170 West (SR88)
Lehi, UT 84043

[subcontractor:
jADORESS
|P0C
Iphone u

Consolidated Paving, Inc

{Contractors APPLICATION FOR PAYMENT

SUBCONTRACT BUDGET

01 General (11095000)

11 Site (11095001)

21 Admin. (11095032)

31 DCMs (11095003)

41 Chiller/Generatcr(l10S50G4)

TOTALS

|0T General (11095000)

ORIGINAL
CONTRACT
SUM

CHANGE ORDERS
SCHEDULED
VALUE

REVISED

CONTRACT

SUM

$8,982,816.00

064, 273.8S f 81 1 ,057,088.86 ]

PAYMENT APPLICATION

COMPLETED AND STORED

ORIGINAL CONTRACT

COMPLETED AND
STORED

TOTAL TO DATE

CHANGE ORDERS
COMPLETED AND
STORED

TOTAL TO DATE

TOTAL
COMPLETED AND
STORED

TOTAL TO DATE

11 Site (11095001)

21 Adrrun (11095C02)

31 DCMs (11095003)

41 Cniller/Generatar (11C95004)

TOTALS

$8,986,614.00

I hearty certify, to the best of my Knowledge and belief that -

the Work covered by this Application for Payment has been completed in accordance with
[the Subcontract Documents, that all amounts have been paid by the Contractor for Work for which
previous Certificates for Payment were issued and payments received from the Contractor (BDB), and
(that current payment shown herein ts now due

Subcorrt rector

BY:

Date

Form updated Sept 28. 2012

fM^cmsexnY •.om » wm>

Balfour Beatty/DPR/Big-D, a Joint Venture
P.O. Box 1607
Riverton, UT 84065
Phone: 801-253-5500
Fax: 801-253-7210

October 10, 2012

Mr. Micah Green
Green Construction Inc.

903 West Center Street
Building D

North Salt Lake, UT 84054
USA

Project
Contract
Classification

Subject

Dear Mr. Green:

Under FAR 52.232-27 Prompt Payment for Construction Contracts referenced in Attachment 5.5 of
your contract, BDB is required to make progress payments to subcontractors within 7 days of
receipt of owner funds. BDB expects funding from USACE on October 10, 2012 for BDB Pay
Application #48 representing earnings through September 17, 2012.

During preparation of Pay Application #49, BDB reviewed the "in place progress" of your activities
and realized that progress reflected in Pay Application #48 was overstated in terms of "cost %
complete" for Green Construction. Reference Subcontractor Earnings Report (SER) #48 enclosed
and posted to your Constructware folder. Since BDB may not hold earned monies unpaid to
Subcontractors, the funds earned on behalf of Green for Pay App #48 have been returned to
USACE on Pay App #49. Monies associated with the progress variance will be paid to Green once
activity progress is validated with BDB's Superintendents and the "cost % complete" advanced
accordingly.

Specifically, the accounting is as follows:

• Total Completed and Stored as shown in Pay App #48 $17,184,303

• Total Paid as of October 9, 2012 $16,839,168

• Funds returned to USACE in Pay Application #49 $ 345,135

No action is required on your part relative to invoicing. Please validate actual progress witti BDB's
Superintendent. You are welcome to email me at bhendrickson® bdbiv.com or call me at
801.381.6634 if you have any concerns with our assessment.

[11095] Utah Data Center
W912DR-10-C-0094
Unclassified/For Government Use Only

Progress Payments Overstated in Owner Pay Application #48

Sincerely,

BALFOUR BEATTY/ $PR/BIG-D, A JOINT VENTURE

Bill Hendrickson
Project Controls Manager

Page 1 of 2

cc

Joan Williford (Balfour Beatty/DPR/Big-D, a Joint Venture)
Cyndee Hadley (Balfour Beatty/DPR/Big-D, a Joint Venture)
Leon Nelson (Balfour Beatty/DPR/Big-D, a Joint Venture)
Robert Mecklenburg (United States Army Corps of Engineers)

Correspondence No. 02449

Enclosures Pay App #48 Green SER

Supporting Documents

Document Type

Document

Open

Description

Date

Size (KB)

Doc

11095-30682

m pi

Pay App 48 Green SER

10/10/2012

163

■i

Page 2 of 2

APPLICATION AND CERTIFICATE FOR PAYMENT
TO Balfour Beatty | DPR | Blfl-D

10427 Morth 11170 West (SR88}

LfiW. lit 8404 3

SUBCONTRACTOR
ADORE SS
POC

PHONE #

oreen Construction

Contractor's APPLICATION FOR PAYMENT

SUBCONTRACT BUDGET

01 General (11095000) „

11 Site (110950011

21 Ad rnn (110950021

31 DCMs (11095003)

^IChlltetGenerator^lOSSOO^
TOTALS ____

ORIGINAL

CONTRACT

SUM

$13,420,000.00

PAYMENT APPLICATION

COMPLETED AND STORED

01 General (11095000)

11 Site (1109S0Q1)

21 Admin (11095002)

31 DCMs (11095003) _

41 ChiHer/G€nerator(11C95004)
TOTALS

ORIGINAL CONTRACT
COMPLETED AND
STORED

TOTAL TO DATE

CHANGE ORDERS
SCHEDULED
VALUE

REVISED

CONTRACT

SUM

$3,875,877^3 | >17,395.677.13

CHANGE ORDERS
COMPLETED AND
STORED

TOTAL TO DATE

TOTAL

COMPLETED AND
STORED

TOTAL TO DATE

$13,378,167.80

,808,135.13 $17,184,302.73

I heart)-/ certify, to the best of my knowledge and belief that -

the WorK covered by this Application for Payment has beer completed in accordance with
the Subcontract Documents, that ail amounts have been paid by the Contractor for Work for which
previous Certificates for Payment were issued and payments received from the Contractor (BDB), and
that current payment shown herein is now due

I Subcontractor

IForm u

1 21 2012

APPLICATION NO: 48

BILUNG PERIOD TO: 9/17/2012

CONTRACT NO: 11095003

CONTRACT DATE:

JOB ff: 11085000; 11095001; 11095002; 11096003; 11096004

Application ts made for Payment, as shown below, in connection with the
Contract

Continuation Sheets) are attached

1. ORIGINAL CONTRACT SUM

2. NET CHANGE ORDERS TO DATE

3. CONTRACT SUM TO DATE (Une #1 & U2 above)

4 TOTAL COMPLETED & STORED TO DATE

Distribution to:

X Contractor
X Contractor's Rep
X Subcontractor
Architect

5 RETAINAGE:

% of Completed Work

(Column I) varies

8. TOTAL EARNED LESS RETAINAGE

(Line 4 Less Line 5 Totals)

7 LESS PREVIOUS CERTIFICATES FOR

PAYMENT (Une 6 from pnor Certificate)

8. CURRENT PAYMENT DUE

9. BALANCE TO FINISH, PLUS RETAINAGE

(Line 3 Ies6 Line 6)

17.173.467 43

$10,816.30

$211,37440

acATIY • &PX # &&•%>

Balfour Beatty/OPR/Big-D, a Joint Venture
P.O. Box 1607
Riverton, UT 84065
Phone: 801-253-5500
Fax: 801-253-7210

October 10, 2012

Mr. Blair Peacock
Jacobson Excavation LLC
579 East Fremont Way
Elk Ridge, Utah 84651

Project
Contract
Classification

Subject

Dear Mr. Peacock;

Under FAR 52.232-27 Prompt Payment for Construction Contracts referenced in Attachment 5.5 of
your contract, BDB is required to make progress payments to subcontractors within 7 days of
receipt of owner funds. BDB expects funding from USACE on October 10, 2012 for BDB Pay
Application #48 representing earnings through September 17, 2012.

During preparation of Pay Application #49, BDB reviewed the "in place progress" of your activities
and realized that progress reflected in Pay Application #48 was overstated in terms ; of cost /o
complete" for Jacobsen Excavation. Reference Subcontractor Earnings Report (SER) #48
enclosed and posted to your Constructware folder. Since BDB may not hold earned monies
unpaid to Subcontractors, the funds earned on behalf of Jacobsen for Pay App #48 have been
returned to USACE on Pay App #49. Monies associated with the progress variance will be paid to
Jacobsen once activity progress is validated with BDB's Superintendents and the cost %
complete" advanced accordingly.

Specifically, the accounting is as follows;

• Total Completed and Stored as shown in Pay App #48 $2,806,512

• Total Paid as of October 9, 2012 $2,556,256

• Funds returned to USACE in Pay Application #49 $ 150,256

No action is required on your part relative to invoicing. Please validate actual progress with BDB s
Superintendent. You are welcome to email me at bhendrickson@bdb1v.cprn or call me at
801.381.6634 if you have any concerns with our assessment.

[11095] Utah Data Center

W912DR-10-C-0094

Unclassified/For Government Use Only

Progress Payments Overstated in Owner Pay Application #48

Sincerely,

BALFOUR BEATTy/DPR/BIG-D, A JOINT VENTURE

Project Controls Manager

cc Joan Williford (Balfour Beatty/DPR/Big-D, a Joint Venture)

Cyndee Hadley (Balfour Beatty/DPR/Big-D, a Joint Venture)

Page 1 of 2

Leon Nelson (Balfour Beatty/DPR/Big-D, a Joint Venture)

(United States Army Corps of Engineers)

Correspondence No. 02450

Enclosures Pay App #48 Jacobson SER

Supporting Documents

Document

Type

Document

Open

Description

Date

nsm

Doc

11095-30683

Pay App 48 Jacobson Excavation

SER

10/10/2012

138

Page 2 of 2

i i:

VJ mu UMirt utificn

09-17-12 SER- JACOBSON EXCAVATION.xIsx

APPUCATION AND CERTIFICATE FOR PAYMENT

TO Balfour Beatty | DPR I Blg-0

10427 North 11170 West (SR88)

Lehl, UT 04043

WTicn rnutfvv • ,

SUBCONTRACT:

address

POC;

PHONE#

Jacobson Excavation

Contractor's APPLICATION FOR PAYMENT

liCT BUDGET

01 General (11095000)

11 Site (11095001)

21 Admin (11085002)

31 OCMafl 1095003)

4lChilter/Gencrator (11095004
TOTALS

ORIGINAL

CONTRACT

SUM

S2. 205.208.00

PAYMENT APPUCATION

COMPLETED AND STORED

01 General (11C950C0)

11 Site (1 10950011

21 Admin fl 1095002)

31 DCMS (11095003)

41 Chiller/Generalor (11095C04)

TOTALS

ORIGINAL CONTRACT
COMPLETED AND
STORED

TOTAL TO DATE

CHANGE ORDERS
SCHEDULED
VALUE

REVISED

CONTRACT

SUM

$808,103,28 82,813,309.26

CHANGE ORDERS

COMPLETED AND
STORED

TOTAL TO DATE

TOTAL

COMPLETED AND
STORED

TOTAL TO DATE

$2,198,408,00

$808,103.26 $2,808,612.26

t hearty oertrfy. to the best of my knowledge and belief that -

the Work covered by thie Application for Payment has been completed in accordance with
the Subcontract Documents, that all amounts have been paid by the Contractor for Work for which
previous Certificates for Payment were issued and payments received from the Contractor (BDB), and
that current payment shown herein is now due

j Subcontractor

APPLICATION NO: 48

BILLING PERIOD TO: 9/1 7/201 2

CONTRACT NO: 11096000

CONTRACT OATE:

JOB#: 11 09 6000; 11085001; 11095002; 11096003; 11096004

Application Is made for Payment, as shown below, in connection with the
Contract

Continuation Sheet(s) are attached
1 ORIGINAL CONTRACT SUM

2. NET CHANGE ORDERS TO DATE

3. CONTRACT SUM TO DATE (Line #1 & #2 above) » g

4. TOTAL COMPLETED & STORED TO DATE

5 RETAINAGE

% of Completed Work

(Column I) vanes

6 TOTAL EARNED LESS RETAINAGE

(Line 4 Less Line 5 Totals)

7 LESS PREVIOUS CERTIFICATES FOR

PAYMENT (Line 6 from plor Certificate)

8. CURRENT PAYMENT DUE
9 BALANCE TO FINISH, PLUS RETAINAGE
(Line 3 less Line 6)

$2.761.720.26

$44,792.00

$6,797.00

Distribution to:

X Contractor
X Contractor's Rep
X Subcontractor
Architect

State of County of.

Subscribed and sworn to before me this day of
Notary Public.

My Commission Number
My Commission expires